Bogleheads.org

JoMoney

You don't owe taxes on borrowed money. I've heard of people managing to use real estate equity loans to live off of, while being able to otherwise deduct any rental income received with depreciation, interest, and other expenses, and effectively use real estate to owe no taxes while having quite a b...

JoMoney

.... Not to challenge you, but what additional information would you get if you knew the ticker symbol? Someone who might be familiar with the fund might reply with their experience with it. Someone could lookup up the fund and find it's prospectus, annual reports, and other fund disclosures, that ...

JoMoney

Sometimes "fund of funds" layer additional fees on top of the underlying holdings, sometimes the stated ER is that of the underlying funds and there is a waiver for any fees incurred for the "fund of funds" (Vanguard does this for some of it's funds.) You haven't provided any inf...

JoMoney

Kenkat wrote: ↑Wed Apr 21, 2021 8:25 pm What bonds are paying less than savings accounts?

3 Year Treasuries yielding 0.312%

vs.
say, a Capital One 360 Performance Savings yielding 0.40%

JoMoney

Capital One 360 offers them with with their checking accounts as well, there's a $20 fee but that includes having it sent FedEx overnight to the address you specify.

JoMoney

I agree with the government sanctioned crypto bit. I just can't quite understand why governments haven't full out banned certain cryptos at this point. Perhaps creating a government sanctioned crypto dollar is too complex or time consuming. My guess, is it's not a legitimate threat to the currency,...

JoMoney

I think the epiphany for me was when I realized a dollar is just a piece of paper. This simplification effectively ignores how physical dollars are marked "Federal Reserve Note" and "legal tender for all debts, public and private". As a United States citizen, unfortunately all p...

JoMoney

... I’d like to at least understand enough to not embarrass myself when people are discussing the subject. It's the crypto hucksters that should be embarrassed. If you don't have any natural need or use of the product, and it's only "growth" in value is from convincing more people (and th...

JoMoney

I'd rather know where (so I never go there)

JoMoney

I can hold a DFA fund (DFFVX or DFSTX) in a 401K to filter out REITs and pair either with a large or large/mid cap fund, so not an unsolvable problem for me. I was writing my thoughts more generally, which is that I would like to see REIT-less indices so that people can set their REIT exposure expl...

JoMoney

What I would favor is indexes that exclude REITs. Then these could be held in a taxable account, and equity investors could set their REIT allocation in a tax-qualified account. Splitting int'l so that countries that deliver qualified dividends could be held in a taxable account, and those that don...

JoMoney

They don't "all" say it, but there are a lot of prominent financial pundits saying that. The concern is for active bond investors that don't have any intention of holding their bonds to maturity (or something close to that.) There is (and has been for over a decade now) a strong belief tha...

JoMoney

I thought "Running the Numbers" were the operators of a type of underground lottery racket.

JoMoney

To the extent the person wants to be invested in the stock market, i.e. they have need/ability/willingness to bear the associated risks... a broad-market index fund "works" at any scale. If anything, the larger the amount of money being managed makes it less likely one could find opportuni...

JoMoney

... I’d like to at least understand enough to not embarrass myself when people are discussing the subject. It's the crypto hucksters that should be embarrassed. If you don't have any natural need or use of the product, and it's only "growth" in value is from convincing more people (and th...

JoMoney

The politest response, might be to quote Benjamin Graham. In The Intelligent Investor, after having made reference to the fact that the world over, Gold was the standard used by those who mistrust currency, yet from 1935 to 1972 the value went from $35 to $48 an ounce: The near-complete failure of g...

JoMoney

https://www.cdc.gov/coronavirus/2019-ncov/prevent-getting-sick/about-face-coverings.html CDC says use a mask that " has two or more layers of washable breathable fabric " (including neck gaiters) I just use two layers of an old t-shirt, that I can throw in the washing machine/dryer. It's i...

JoMoney

FWIW, my guess is that the I/B/E/S calculations is a weighted average of the individual stocks/business earnings. Whereas the S&P index earnings calculation aggregates all the earnings of the all the companies as if they're one giant stock. It makes a big difference in the net result if there is...

JoMoney

Thank you, JoMoney. My issue is that S&P spreadsheet source quotes a different number for 2019 TTM Earnings than Yardeni Research does (source also in my original post). Assuming they are both credible sources, how do I reconcile the differences? I see now, interesting.. Yardeni does quote his ...

JoMoney

If you max out Series I Savings Bonds, which can only be bought in "taxable", the interest can be tax-deferred for up to 30 years, state tax free, and may be federal tax free for certain educational purposes. If you're otherwise holding fixed income in a retirement account it might free up...

JoMoney

If you have a balanced portfolio, you'll be drawing more from your bonds/cash after a market decline in order to get your portfolio back to your target allocation. From what I've read on here, it's pretty normal for people to cut back on their spending when markets aren't so cheery. There are many r...

JoMoney

There are lots of different ways of aggregating earnings , or even aggregating the P/E's of various stocks, in a portfolio... Including to how to handle extremely low or negative earnings for a company, which leads to lots of different numbers that are all correct but depend on the specific aggregat...

JoMoney

The quote from Bogle is The true investor . . . will do better if he forgets about the stock market and pays attention to his dividend returns and to the operating results of his companies. That's it. Thank you. I think that is a Benjamin Graham quote. Well, https://www.goodreads.com/work/quotes/16...

JoMoney

I 2nd (or 3rd) the recommendation for diatomaceous earth, which is safe for people and pets and great for getting rid of bugs of all types.
Also, you might get a plug to cover your drain for your own peace of mind.

JoMoney

As more people use broad market cap weighted indexing, it diffuses the money they're investing across the entire market. If they were investing any other way it would distort the relative valuation. It's possible the entire market gets over valued, but it's not the cap-weighted indexers deciding how...

JoMoney

I like Dave Ramsey's 'rule of thumb', that the total value of all your vehicles shouldn't be more than half your annual income. If you have significant wealth, you can include some theoretical value of the "income" your portfolio adds to your annual income/growth. The idea, is that you don...

JoMoney

The Dow has something like 3600 companies... When someone says "The Dow" the common reference is to the Dow Jones Industrial Average, which is an index that has 30 companies, not 3600. The Dow Jones Indexes group offers other indices, including a "Dow Jones US Total Market Index"...

JoMoney

Dividends are simply one way for a company to provide a return to investors. Share buybacks is the other way. Companies must use one or the other, or else the investment in the company is lost. All companies have a limited life time, they don't last forever. And if a company never pays a dividend o...

JoMoney

Well, then, I believe that not receiving dividends has a sort of psychological component that gives people's subconscious the illusion of money somehow invariably invested wisely and super tax efficiently by clairvoyant CEOs The way I see it, either you trust the management or you probably shouldn'...

JoMoney

Actin wrote: ↑Thu Apr 15, 2021 8:31 pm Proportionally, this company is still more correctly valued than Tesla

There goes my complaint about the problems with "small caps"

JoMoney

You get to too choose when you realize the income from capital gains, and if you're in an accumulation phase in a taxable account then it makes a difference in taxes that might otherwise be deferred. Also, this being a board focused on the advice of John Bogle, we primarily focus on broad market ind...

JoMoney

It's about risk, debt / leverage amplifies your risk exposure.

Another Dave Ramsey quote, "If you don't like being debt free, you can always go back into debt"

JoMoney

I don't follow much of the "portfolio effect" asset allocation, but when it comes to the bottom line I'm not going to borrow at 3% (mortgage or otherwise) and then buy bonds paying 2%. ... although I can see some justification for a larger short-term "emergency fund" if you're a ...

JoMoney

My cost is about $50 a month, for just me, employer pays about $450.
It's a high-deductible plan that covers checkups (and that's about it) until $3k deductible is met, then copay (30%) up to $6k, then 100% covered after that. Employer provides some contribution to HSA account.

JoMoney

Your idea that you should " buy the indexes on any pullbacks " seems a bit counter to the idea of "passive" investing. We are in 'interesting' times. I do think the price of investable assets are being priced in dollars at unusually high multiples, but I also think there's more d...

JoMoney

Anecdotally, outside of someone that was a professional construction/building contractor, I haven't heard of anyone who went through the process of building a home that would be willing to go through that process again.

JoMoney

For a 30 year period as the SWR methodology used, 1/30 would be 3.33% and only needing enough growth to keep up with inflation.
If your expectation is -.5% real, why bother with the risk in stocks ?

JoMoney

@OP take a look at $SCHD and $SCHV. SCHD has a higher dividend vs VYM SCHD has doubled the returns of VYM SCHD fell 5% less than VYM During march 2020 SCHD dividend yield - 2.87 VYM dividend yield - 2.98 Tony FWIW, As of the 02/28/2021 price, Morningstar's projected forward Dividend Yield for SCHD ...

JoMoney

I don’t see any reason why you couldn’t create a simple RLT solely for the purpose of buying I Bonds and there is no need to have your checking account with the same registration. If this is the only reason for the trust the dispositive provisions can simply have the trust terminate at death and po...

JoMoney

If you have a rollover IRA and Taxable account at the same brokerage, e.g. Vanguard, can you take a distribution from the rIRA as direct transfer of the same mutual fund, e.g. VTSAX VG total stock, then pay the state and federal income tax? Yes, but if I recall correctly the shares will show up as ...

JoMoney

I'm not in retirement, but I expect I would prefer monthly for the sake of bills and statement cycles being monthly, and being able to show a regular periodic deposit if I need to apply to rent a place, a loan, or such... On the other hand, if you're old enough to have RMD's on a retirement account,...

JoMoney

How much value is buying I bonds worth to you? I don't think the value justifies the need to create a trust Sadly, this is my feeling to. After having been temporarily locked out of my TD account and dealing with the hassle of that, I'm questioning my desire to deal with Treasury Direct at all. Ser...

JoMoney

Some people don't lock their front door, is it necessary that they should lock it? I don't know, but it seems like a very simple measure to keep from being an easy target of opportunity.

JoMoney

Each person may make his/her own assumptions as to future tax rates. There’s no way to predict future tax rates over a long period of time. During my career the top rate has been as high as 70% and as low as 28%. I generally use the law as it’s currently scheduled to be in effect. To the extent you...

JoMoney

It's a great book, the "Parable" about the Gotrocks family (written by Warren Buffett and included in Mr. Bogle's Little Book) is my favorite 'story' about how to invest in stocks http://johncbogle.com/wordpress/wp-content/uploads/2007/03/chapter%20one.pdf Overall I think Mr.Bogle's Common...

JoMoney

It was a big factor for me, but I don't think that's the norm. Some people want the prestige of a specific school and cost isn't a factor, the price is actually seen as part of it's elite-ness, sort of a way to show their wealth/status. Some people want a "college experience" that involves...

JoMoney

Cold hard fact I found now that I am retired: With our $50K in SS, anything past approx $25K additional ($75K gross) puts us into the current 22% bracket. So every $ I convert to my Roth, I pay 22% as Fed Taxes. As a comparison, 22% normally starts around $115K gross for working folks. What was you...

JoMoney

Wiring money settles faster, but there are typically fees involved (usually for sending a wire, sometimes for receiving it too.) I don't use wires, the only time I've had a situation where it could have been useful a bank cashiers check worked just as well and I felt more comfortable handing over th...

JoMoney

^ You're free to make whatever "plan assumptions" you want, but if you're trying to solicit feedback on a hypothetical future state of law you're going to open it up for all kinds of wild assumptions about the possibility of the future. What if income tax moves to a flat tax and/or nationa...

JoMoney

... This is true for any of us at any time to move to a place like Mississippi or Oklahoma. In the real world, place is not fungible No, "most of us" aren't making $90k a year while living in an area where homes are selling for $2M (and I'm guessing would rent @ $10k a month/$120k a year).

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